adminConrad Mwanawashe Business Reporter
DEVEN Engineering, a unit of the Industrial Development Corporation, will this year start assembling Yutong passenger coaches as demand for the Chinese-made buses on local and regional markets grows.
The company expects growth in sales boosted by the new development and by Government’s new policy in support of the motor industry. Deven Engineering also sees growth in rehabilitating of the old fleet this year as the increase in duty on bus imports changes the relative costs of importing a new bus versus doing a local rebuilt.
“In 2015, Deven has potential to sell more due to the Government policy support to the motor industry as contained in the 2014 mid-term fiscal policy review and also due to potential to locally assemble the Yutong buses,” IDC chief executive officer Mr Mike Ndudzo said in an interview.
“Deven will be focusing on both luxury and the traditional buses and minibuses for use both in Zimbabwe and across borders,” he said.
Bus operators imported a total of 154 Yutong buses over the period 2013 – September 2014 with Deven buying 15.
Deven is also continuing with rehabilitating the old fleet as and when demand arises and also offering development engineering and fabrication services to industry and the mining sector. “In 2014, four rebuilts were done. Now with the policy change which imposed duty on bus imports, Deven is looking forward to doing more rebuilts in 2015 as the duty changes the relative costs of importing a new bus versus doing a local rebuilt,” said Mr Ndudzo.
Government last year increased customs duty on buses in order to complement efforts by the local motor industry. Local assembly of motor vehicles and buses benefits downstream industries, such as paint, carpet material, glasses’, tyres’; and batteries’ manufacturers, among others. These industries have, however, either closed or are operating at very low capacity due to low demand for goods and services from local motor vehicle assembly plants.
‘In addition, through collaboration with its former employees and other engineering companies, Deven has been offering engineering and fabrication services to the mining sector,” said Mr Ndudzo.
Deven would not be disposed of as the IDC position is to take advantage of the new policy support to the motor sector and develop Deven by going into bus and mini-bus assembling in partnership with an Original Equipment Supplier (OEM).
Imports of motor vehicles for the period January to June 2014 account for about 10 percent of the import bill. This is despite the existence of capacity by the local assembly plants to produce light commercial vehicles, buses, Double Cabs and passenger motor vehicles.
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